A common issue a user would face while providing liquidity to various pools is the inability to borrow against their tokens uninterrupted. In many cases, a user would need to stop providing liquidity to the most lucrative pools and bring the asset to somewhere like Aave or Compound. While these protocols are great for collateralized loans, they are not ideal for the farmer, whose yields become decimated when removing their tokens from participation.
Curvance seeks to unlock wrapped tokens such as cvxCRV, bveCVX, yCRV and many others allowing users to earn the APR they would on their original platforms while using those deposits as collateral for secure, stablecoin loans. Each asset's borrowing limit automatically determines lending ratios based on various factors, allowing users to borrow funds to invest and earn more.
For example, a user may deposit cvxCRV tokens from the Convex Finance platform into Curvance. Our protocol routes the deposited cvxCRV to the original Convex pool. While the tokens are earning interest, the user can 'lock' their deposit as collateral to gain a credit limit.
Liquidity providers to the Curvance protocol earn CVE tokens, which can be staked to receive boosted rewards:
- Platform fees based on TVL
- Fees from the lending market
- Voting rights in the Curvance DAO
By extending collateralized credit limits to yield farmers, Curvance is, in a way, unlocking a large percentage of the deeper DeFi market. This breakthrough, alongside other products like a CVX wrapper, would make our protocol a significant tool in various DeFi wars.